Tether has significantly increased its gold investments, acquiring 26 tons in the third quarter of 2025. This purchase brings Tether's total gold holdings to 116 tons, valued at approximately $14 billion. The majority of this gold backs Tether's stablecoin UST, while 12 tons support Tether Gold (XAUT), a token backed by one troy ounce of gold stored in Switzerland. This strategic move by Tether comes as gold prices have surged by 67% in 2025, reflecting changes in market sentiment and the fear and greed index. Tether Gold (XAUT) provides a digital alternative to physical gold, though it carries risks such as potential depegging.